Goldman Sachs will raise entry-level salaries by 20 per cent as Wall Street struggles to retain young talent facing gruelling hours and an intense workload.
That means the annual base salary for a junior banker at Goldman will increase to approximately $85,000, excluding bonuses, according to people familiar with the matter. The increase on base salaries won't affect bonuses.
Second- and third-year analysts will receive more pay but the amount is set to vary depending on the division they work for and profitability of the team. The increase will only apply to employees in the United States and not every new employee will benefit from it.
A spokeswoman for Goldman Sachs declined to comment on the pay rise, first reported by the New York Post.
Fellow Wall Street giants Bank of America - which was recently handed a $17 billion record fine to settle allegations of mortgage mis-selling - and JPMorgan are also expected to increase base salaries for junior employees by at least 20 per cent starting 2015.
In recent months, banks have introduced new guidelines, cutting back hours and discouraging young analysts from working on weekends, in an effort to improve working conditions with many graduates swapping Wall Street for a more relaxed workplace like Sillicon Valley.